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Union Bank of India (UNIONBANK) Fair Value & Analysis

Financial Services · IN · Market cap ₹1.4T (≈ $14.8B) · ISIN INE692A01016

What is Union Bank of India really worth?

UB Union Bank of India UNIONBANK · BSE
Price₹186.55
Fair Value₹287.92
Upside+54.3%
Quality35/100

Below-average quality, trading 35% below our fair value of ₹287.92.

As of Aug 27, 2026, the fair value of Union Bank of India is ₹287.92 per share against a price of ₹186.55, so the fair value sits 54% above the price. A model estimate blended from multiple valuation models, recalculated regularly.

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Strengths

Highly profitable · 40.5% net margin

Risks

!Expensive Growth (revenue 5y +8.8 %/yr)
!Low debt · negative free cash flow
!Moderate moat 54/100
!Evidence only medium, so the estimate is less certain
Evidence: Medium Range ₹215.94 – ₹359.90

Fair value as of: Aug 27, 2026

From 6 valuation models · updated 10 days ago

Share price +6.7% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The large discount to fair value meets weak quality (35/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case (₹215.94). The market is more pessimistic than our downside scenario.
  • For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (5 years)

₹196.50 ₹27.68 Fair Value ₹287.92 Apr 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 27, 2026.

How to read this chart

60‑month range ₹27.68 – ₹196.50 · fair‑value band ₹215.94 – ₹359.90 · the ₹186.55 price screens below the ₹287.92 fair value. Dashed = 300-day average. As of Aug 27, 2026.

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Analysis

Union Bank of India (UNIONBANK) currently trades at ₹186.55, while our model-based Fair Value estimate is ₹287.92, implying the stock looks roughly 35.2% undervalued today. The Quality Score stands at 35/100 (below-average quality), in the Financial Services sector. Bull case: the Multiples group reads highest at a median of ₹244.93 per share, and 3 of the 6 models we run sit above the ₹186.55 price. Bear case: the Dividend Discount group reads lowest at ₹81.71, and 3 of the 6 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Union Bank of India generated revenue of ₹510B at a net margin of 40.5%. Revenue grew 15.8% year over year. It earns a return on equity of 15.8%. The stock trades on a trailing P/E of 6.8. Fundamentals as of Aug 27, 2026

Our scenario range runs from ₹215.94 (bear case) to ₹359.90 (bull case); at ₹186.55, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 7% below its 52-week high and 54% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at −10% fair-value upside, at 54%, UNIONBANK screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹11.88 per share, which is 4.9 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
DDM Multi-Stage ₹45.69 ₹81.71 ₹103.96 66
Gordon GGM ₹45.69 ₹99.75 ₹167.83 65
Residual Income ₹176.97 ₹239.00 ₹772.73 64
All 6 models by family
Dividend Discount
Gordon GGM ₹45.69 ₹99.75 ₹167.83 65
DDM Multi-Stage ₹45.69 ₹81.71 ₹103.96 66
Multiples
P/E Multiple ₹248.17 ₹330.90 ₹413.62 63
P/B Multiple ₹183.70 ₹244.93 ₹306.17 55
Asset-Based
NCAV (Graham) ₹87.48 ₹117.22 ₹174.95 54
Economic Profit
Residual Income ₹176.97 ₹239.00 ₹772.73 64

Widest divergence: Multiples (₹244.93) versus Dividend Discount (₹81.71). Highest evidence: DDM Multi-Stage (66).

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Key figures & financial health

P/E ratio 6.8
P/S ratio 2.26 P/E × margin
EPS (TTM) ₹27.27 price ÷ EPS = P/E 6.8
Dividend yield 2.6% payout 17.8%
Net margin 33.1% FY2026
Return on equity 15.8% TTM
More key figures
Profitability
Return on assets (EBIT) 0.5% avg 4y
Operating margin −888% TTM
Growth
Revenue (TTM) ₹510B TTM
Revenue growth (YoY) +15.8% 3y avg +6.2%
EPS growth (YoY) +9.7%
Balance sheet & cash flow
Free cash flow −₹390B FY2026

Figures from reported company fundamentals · as of Aug 27, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 35/100

Of which business quality 31 · Market factors (momentum, volatility) 69

Profitability 37
Margins and returns on capital today
Quality Growth 37
Are margins and returns improving?
Cashflow 0
Earnings quality: real cash, not paper profit
Fin. Strength 20
Balance sheet, leverage, solvency risk
Investment 50
Disciplined investing over empire-building
Low Volatility 65
Calm price path (market factor)
Momentum 63
Price trend over the last 3–12 months (market factor)
52W Momentum 85
Distance to the 52-week high (market factor)
Net Issuance 62
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Union Bank of India provides various banking products and services. It operates through four segments: Treasury Operations, Retail Banking Operations, Corporate and Wholesale Banking, and Other Banking Operations.

Full company description

Union Bank of India provides various banking products and services. It operates through four segments: Treasury Operations, Retail Banking Operations, Corporate and Wholesale Banking, and Other Banking Operations. The company offers savings and current accounts; term deposits; home, vehicle, education, personal, agriculture, and gold loans; loans against the property; and loans for senior citizen and pensioners, as well as products and loans for micro, small, and medium enterprises. It also provides mutual funds; life, non-life, and health insurance products; demat and online trading services; tax saving deposits; government saving schemes; and safe deposit locker and cheque collection services. In addition, the company offers corporate loans, that includes export scheme, line of credit, trade finance, working capital, project financing, and channel finance; debt structuring/restructuring, loan syndication, and structured finance services; cash management, ECGC cover, and foreign exchange services, as well as derivatives; export and import finance services; NRI banking services; and treasury and other products, and remittance services. Further, it provides app, internet, self-service, ATM, and SMS banking services; point of sale terminal and immediate payment services; and debit, credit, gift, and payroll cards. The company was incorporated in 1919 and is headquartered in Mumbai, India.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Union Bank of India reported revenue of ₹588B in FY2026 versus ₹414B in FY2022, a compound +9.2%/yr. Reported net income was ₹194B in FY2026, compounding +38.6%/yr from FY2022.

Growth Quality 50/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2026)
₹588B
Latest YoY
−0.8%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+6.2%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+8.8%
Avg. revenue growth/yr (12Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+18.2%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+35.7% · in INR
Earnings growth per share plus dividend yield: the value created per share and year.
Earnings growth per share+33.1%
Dividend yield2.6%
Trend Two data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.5Y 33.1% vs 10Y 11.8%, picking up
Operating margin (EBIT) Operating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.25.8% (2014) → 4.9% (2017) · falling
Worst earnings drop140% (2019) (loss year, drop beyond 100%) · in INR
⚠ Revenue per share shrinking 4.6%/yr over ~7Y (margin trend unclear) Structural-decline marker: revenue PER SHARE has fallen over the last decade (robust median trend, not a single year). Backtested across 2005 to 2017, such businesses trailed the market by about 2.5 percentage points per year. Display only: it does not change the fair value or the quality score.
Revenue +9.2%/yr
FY22 ₹414B
FY23 ₹490B
FY24 ₹548B
FY25 ₹592B
FY26 ₹588B
Net income +38.6%/yr
FY22 ₹52.7B
FY23 ₹85.1B
FY24 ₹138B
FY25 ₹180B
FY26 ₹194B

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Cite: Fair Value Calculator (2026). "Union Bank of India Fair Value". https://www.fairvalue-calculator.com/stock/UNIONBANK.BSE

Peer Group

Banks - Regional · 1070 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 35 · Bottom 25%
Fair Value upside +54% · Top 25%
Return on equity (TTM) 16% · Top 25%
Return on assets 1% · Above median
Net margin (TTM) 40% · Top 25%
Revenue growth 16% · Above median
Dividend yield (TTM) 2.6% · Above median
Debt / equity 0.21× · Lower than median

Valuation Multiples vs Banks - Regional median · lower = cheaper

P/E (TTM) 6.8× · Cheaper than 75% of peers
P/B 1.05× · Cheaper than median
P/S (TTM) 2.74× · Cheaper than median
PEG 0.22× · Cheaper than 75% of peers

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Banks - Regional stocks, each showing price versus our Fair Value estimate (as of Aug 27, 2026).

Stock Price Fair Value vs Fair Value
DBS Group D05 75.65 SGD 40.48 SGD −46%
China Merchants Bank Co 3968 HK$47.96 HK$76.51 +60%
Intesa Sanpaolo S.p.A ISP €6.78 €5.66 −17%
HDFC Bank Limited HDB $23.18 $24.12 +4%
BNP Paribas SA BNP €104.54 €144.64 +38%
UniCredit S.p.A UCG €84.71 €77.62 −8%
Mizuho Financial Group MFG $10.74 $9.69 −10%
ICICI Bank Limited ICICIBANK ₹1,423 ₹835.21 −41%
Oversea-Chinese Banking Corporation O39 31.07 SGD 19.80 SGD −36%
CaixaBank, S.A CABK €13.52 €8.85 −35%

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Frequently asked questions

Is Union Bank of India (UNIONBANK) overvalued or undervalued?
As of Aug 27, 2026, our model estimates a fair value of ₹287.92 versus a price of ₹186.55, about +54% upside (undervalued).
What is the fair value of UNIONBANK?
Our model-based fair value for Union Bank of India is ₹287.92 (as of Aug 27, 2026), built from audited fundamentals. The current price: ₹186.55.
What is the quality score of UNIONBANK?
Union Bank of India has a Quality Score of 35/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Union Bank of India (UNIONBANK)?
Our model-based price target is the fair value of ₹287.92 (as of Aug 27, 2026) from 6 valuation models. Cautious scenario ₹215.94, optimistic scenario ₹359.90. It is a calculation from audited fundamentals, not an analyst target.
What is the Union Bank of India stock forecast for 2026?
Our models put fair value at ₹287.92, about +54% upside versus a price of ₹186.55 (undervalued). Cautious scenario ₹215.94, optimistic scenario ₹359.90. The calculation is refreshed regularly with new filings.
What is the revenue of Union Bank of India (UNIONBANK)?
Union Bank of India reported trailing-twelve-month revenue of about ₹510B (latest available figure, as of Aug 27, 2026).
What is the net profit margin of UNIONBANK?
The net profit margin of Union Bank of India is about 40.5%, meaning it keeps roughly 40.5% of revenue as net income. Based on the latest reported figures.
Does Union Bank of India pay a dividend?
Union Bank of India currently shows a dividend yield of about 2.60% relative to its recent price (as of Aug 27, 2026).
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